Inmaculada Bel-Oms and Alfredo Grau Grau
The purpose of this study is to explore the moderating role of chief executive officer (CEO) duality in the relationship between board subcommittees and audit committees with…
Abstract
Purpose
The purpose of this study is to explore the moderating role of chief executive officer (CEO) duality in the relationship between board subcommittees and audit committees with financial expertise on firm performance in European countries. To extend this research, the sample is divided into two subsamples based on common and civil law, with the latter being divided into the three subgroups of civil French law, civil German law and civil Scandinavian law.
Design/methodology/approach
Panel data for 3,448 observations from nine European countries are analyzed for the period 2016–2019. The model is estimated and contrasted with the generalized method of moments.
Findings
The main findings of this study show that CEO duality moderates positively the relationship between corporate governance committees and firm performance in Europe. Furthermore, the results indicate that CEO duality moderates positively on the association between corporate governance committees and firm performance in countries located by civil law. The findings also evidence that CEO duality moderates positively on the association between corporate governance and compensation committees and firm performance in countries located by Civil-French. Finally, the findings reveal that CEO duality moderates positively the relationship between audit committees with financial experts and firm performance performance in countries located by Civil-German.
Research limitations/implications
This study has some limitations. First, this study may not have considered some characteristics that could influence firm performance from other empirical and theoretical approaches. Second, this study divided the sample according to La Porta et al. (1997) and Graff’s (2008) approaches, but other classifications from different studies may have led to different outcomes. Finally, this study did not examine the country-level aspects that influenced firm performance, such as culture and institutional characteristics beyond corporate governance, economic and political factors. This is a potential avenue for future research.
Practical implications
Managers can use the findings to make strategic company decisions, and they can help other directors understand the important effects CEO duality has on corporate boards because board subcommittees mitigate the negative effect of CEO duality on firm performance.
Originality/value
This study expands upon the research about the moderating role of CEO duality through the different board subcommittees, thereby presenting it as an instrument that greatly enhances firm performance. In this sense, this moderating role preserved firm performance when the agency theory was previously corroborated, and the independent management of CEO duality was found to negatively impact.
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Keywords
María Consuelo Pucheta-Martínez, Inmaculada Bel-Oms and Isabel Gallego-Álvarez
This paper explores the impact of some audit committees' characteristics (executive and independent directors and directors' attendance at audit committee meetings) on CSR…
Abstract
Purpose
This paper explores the impact of some audit committees' characteristics (executive and independent directors and directors' attendance at audit committee meetings) on CSR reporting. Moreover, it also aims to test the moderating effect of women directors on boards on the association between audit committees' characteristics and CSR disclosure.
Design/methodology/approach
This study uses an international sample comprising 13,264 firm-year observations of non-financial firms from 2007 to 2018.
Findings
The results show that executive and independent directors on audit committees have a negative impact on CSR reporting, while the directors' attendance at audit committees meetings is positively associated with CSR disclosure. This study’s results also provide convincing evidence that female directors on corporate boards positively moderate the negative association between executive and independent directors on audit committees and CSR disclosure. Finally, the findings also show that female directors on corporate boards do not moderate the positive impact of directors' attendance at audit committees' meetings on CSR information.
Research limitations/implications
This study is focused on attributes of audit committees based on a sample of international listed non-financial firms.
Originality/value
This is the first study analyzing the moderating role of female directors on boards on the relations between both executive directors on audit committees and CSR reporting and the average attendance of directors at audit committees' meetings and CSR disclosure.
Propósito
Este trabajo explora el impacto de algunas características de los comités de auditoría (consejeros ejecutivos e independientes y la asistencia de los consejeros a las reuniones de los comités de auditoría) en la divulgación de información de responsabilidad social corporativa (RSC). Además, también tiene como objetivo analizar el efecto moderador de las consejeras del consejo de administración en la relación entre las características de los comités y la divulgación de la RSC.
Diseño/metodología/enfoque
Este estudio se basa en una muestra internacional que comprende 13,264 observaciones empresas-año no financieras desde 2007 hasta 2018.
Hallazgos
Los resultados muestran que los consejeros ejecutivos e independientes en comités de auditoría tienen un impacto negativo en la divulgación de información de RSC, mientras que la asistencia de los consejeros a las reuniones del comité se asocia positivamente con la divulgación de información sobre RSC. Nuestros resultados también evidencian que las consejeras del consejo de administración moderan positivamente la asociación negativa entre los consejeros ejecutivos e independientes de los comités de auditoría y la divulgación de información sobre RSC. Finalmente, los hallazgos también muestran que las consejeras no moderan el impacto positivo de la asistencia de los consejeros a las reuniones de los comités de auditoría y la divulgación sobre RSC.
Limitaciones/implicaciones de la investigación
Este estudio se centra en los atributos de los comités de auditoría de una muestra de empresas internacionales no financieras cotizadas.
Originalidad/valor
Este es el primer estudio que examina el papel moderador de las consejeras de los consejos en las relaciones entre los consejeros ejecutivos en los comités de auditoría y el informe de RSC y la asistencia media de los consejeros a las reuniones de los comités de auditoría y divulgación de la RSC.
Details
Keywords
- Corporate social responsibility commitment
- Women directors
- Board commissions
- International firms
- Executive directors
- Independent directors
- Activity audit committee
- Compromiso de responsabilidad social corporativa
- Consejeras
- Comisiones del consejo
- Empresas internacionales
- Consejeros ejecutivos
- Consejeros independientes
- Actividad del comité de auditoría
María Consuelo Pucheta-Martínez, Inmaculada Bel-Oms and Gustau Olcina-Sempere
Companies, politicians, the mass media, legislators, scholars and society in general have shown a growing interest in how board gender diversity affects a firm’s decisions. This…
Abstract
Purpose
Companies, politicians, the mass media, legislators, scholars and society in general have shown a growing interest in how board gender diversity affects a firm’s decisions. This concept has been developed because some nations have introduced voluntary policies to regulate and increase the proportion of female directors on corporate boards. Thus, the purpose of this paper is to review previous research based on board gender diversity as a corporate governance mechanism and its effect on some firms’ business decisions: financial reporting quality (FRQ), firm performance and corporate social responsibility (CSR) reporting.
Design/methodology/approach
The authors focus on the agency and stakeholder theory to examine the link between female directors on boards and FRQ, CSR disclosure and firm performance.
Findings
This review provides researchers a structure that can identify the benefits and disadvantages of including female directors on boards regarding three particular corporate outcomes (FRQ, firm performance and CSR reporting).
Originality/value
This study provides a review of past literature on firm performance, CSR disclosure and FRQ from 1975 to 2017, and it contributes to past research by giving a broad overview of the main results of the association between female board directors and corporate decisions. The findings have implications for governments, academics and company managers.
Objetivo
Las empresas, los políticos, los medios de comunicación, los legisladores, los investigadores y la sociedad, en general, han incrementado su interés en cómo la diversidad de género de los Consejos de Administración impacta en las decisiones empresariales. El concepto de diversidad de género en los Consejos ha sido desarrollado porque algunos países han implementado políticas voluntarias para regular e incrementar la proporción de mujeres consejeras en los Consejos de Administración de las empresas. Por tanto, el objetivo de este trabajo es revisar la literatura previa que se ha centrado en analizar la diversidad de género del Consejo de Administración como mecanismo de buen gobierno corporativo y su efecto en algunas decisiones empresariales: calidad de la información financiera, desempeño empresarial y divulgación de información sobre la responsabilidad social corporativa.
Diseño/metodología/perspectiva
Para examinar la relación entre la presencia de mujeres consejeras en los Consejos de Administración y la calidad de la información financiera, la divulgación de información sobre la responsabilidad social empresarial y el desempeño empresarial nos hemos basado en la teoría de la agencia y la de los stakeholders.
Resultados
Esta revisión de la literatura previa proporciona a los investigadores una sólida estructura para que puedan identificar las ventajas y desventajas de incorporar mujeres consejeras en los Consejos de Administración con respecto a tres decisiones empresariales en particular (calidad de la información financiera, desempeño empresarial y la divulgación de información sobre la responsabilidad social corporativa).
Originalidad/contribución
Este trabajo realiza una revisión de la literatura previa sobre el desempeño empresarial, sobre la revelación de información sobre la responsabilidad social empresarial y sobre la calidad de la información financiera desde 1975 hasta 2017, y contribuye a la literatura previa ofreciendo una amplia perspectiva de los principales resultados de la relación entre la presencia de mujeres en los Consejos de Administración y estas tres decisiones empresariales. Los resultados tienen implicaciones para los gobiernos, los académicos y los gerentes de las empresas.
Details
Keywords
- Corporate governance
- Gender diversity
- Boards
- Firm performance
- Financial reporting quality
- Corporate social responsibility disclosure
- Gobierno corporativo
- Diversidad de género
- Consejos de Administración
- Desempeño empresarial
- Calidad de la información financiera
- Divulgación de información sobre responsabilidad social corporativa
Satya Prakash Mani, Shashank Bansal, Ratikant Bhaskar and Satish Kumar
This study aims to examine the literature from the Web of Science database published on board committees between 2002 and 2023 and outline the quantitative summary, journey of…
Abstract
Purpose
This study aims to examine the literature from the Web of Science database published on board committees between 2002 and 2023 and outline the quantitative summary, journey of board committees’ research and suggest future research directions.
Design/methodology/approach
This study examines bibliometric-content analysis combined with a systematic literature review of articles on board committees to document the summary of the field. The authors used co-citation, co-occurrence and cluster analysis under bibliometric-content analysis to present the field summary.
Findings
Board committee composition, such as their gender, independence and expertise, as well as factors affecting corporate governance, such as reporting quality, earnings management and board monitoring, all have a significant impact on board committee literature. The field is getting growing attention from authors, journals and countries. Nevertheless, there is a need for further exploration in areas like expertise, member age and tenure, the economic crisis and the nomination and remuneration committee, which have not yet received sufficient attention.
Originality/value
This paper has both theoretical and practical contributions. From a theoretical perspective, this study substantiates the prevalence of agency theory within board committee literature, reinforcing the foundational role of agency theory in shaping discussions about board committees. On practical ground, the comprehensive overview of board committee literature offers scholars a road map for navigating this field and directing their future research journey. The identification of research gaps in certain areas serves as a catalyst for scholars to explore untapped dimensions, enabling them to strengthen the essence of the committees’ performance.